I’ve been contemplating adding more $GOOGL. I like the company, I like the current setup, and it’s one of the individual stocks I view as a long-term foundational holding. The dilemma: I’m already up about 106% and it’s grown to roughly 5% of my portfolio (not including its value in my ETFs). Part of me thinks 5% is enough for one individual stock. The other part thinks if it’s one of my highest-conviction companies, why not let it be a little bigger? Still deciding but leaning towards adding. Anyone else hesitate to add to a stock you have strong conviction in once it’s already a decent-sized part of your portfolio?
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2 Comments
Michael L@sonofrely · 2hEdited
Before you make a decision, you need to set yourself some ground rules, and unfortunately only you can decide that. For me personally I use a 3-6-9% rule. 3% allocation is for new positions im building that might have a bit more risks. 6% is my main target for standard conviction holdings. 9% is my target for high conviction holdings that I feel is exceptionally undervalued. I also don't trim positions unless the thesis starts changing or the valuation starts looking stretched beyond those allocations. I also don't add to positions once they are at the target allocation. This is just what works for me, but you unfortunately need to make rules that work for you that balance your risk profile.
Stargayte @stargayte · 40m
Only you can decide, if you have strong convictions in the company then maybe you should, but valuations are very high. Personally, I watched the Google presentation yesterday, that was very disappointing. The feature they pushed the most was a LED that tells you when you have messages, that's very sad. The sign language live translation was cool but that's limited to a few people and also they only support the American sign language so far.
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